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The Complete CPA Reference

Book Description

The newly updated fast-reference problem solver

The Complete CPA Desk Reference—the convenient, comprehensive reference professionals have relied on for nearly fifteen years—is now updated in a new Fifth Edition to give today's busy executives and accountants the helpful information they need in a quick-reference format. Packed with practical techniques and rules of thumb for solving day-to-day accounting issues, the new edition helps you quickly pinpoint what to look for, what to watch out for, what to do, and how to do it. In an easy-to-use Q & A format, it covers such useful topics as IFRS standards, internal control over financial reporting financial measures, ratios, and procedures.

  • Includes complete coverage of the Risk Assessment Auditing Standards and Standards of the PCAOB

  • Incorporates Accounting Standards Codification (ASC) throughout the book

  • Adds new chapters on professional ethics and quality controls for CPA firms

  • Features a new section on International Financial Reporting Standards (IFRS)

  • Packed with checklists, samples, and worked-out solutions to a variety of accounting problems, this reliable reference tool is a powerful companion for the complex, ever-changing world of accounting.

    Table of Contents

    1. Cover
    2. Title Page
    3. Copyright
    4. Dedication
    5. About the Authors
    6. Acknowledgments
    7. Introduction
    8. Part I: Commonly Used Generally Accepted Accounting Principles
      1. CHAPTER 1: Financial Statement Reporting: The Income Statement
        1. Income Statement Format
        2. Comprehensive Income
        3. Extraordinary Items
        4. Nonrecurring Items
        5. Discontinued Operations
        6. Revenue Recognition
        7. Other Revenue Considerations
        8. Multiple Deliverables
        9. Software Revenue Recognition
        10. Research and Development Costs
        11. Advertising Costs
        12. Restructuring Charges
        13. Other Expense Considerations
        14. Earnings per Share
      2. CHAPTER 2: Financial Statement Reporting: The Balance Sheet
        1. Assets
        2. Liabilities
        3. Fair Value Measurements
        4. Fair Value Option for Financial Assets and Financial Liabilities
        5. Stockholders’ Equity
      3. CHAPTER 3: Financial Statement Reporting: Statement of Cash Flows and Other Disclosures
        1. Statement of Cash Flows
        2. Personal Financial Statements
        3. Incorporation of a Business
        4. Partnerships
      4. CHAPTER 4: Accounting and Disclosures
        1. Hierarchy of GAAP
        2. FASB Accounting Standards Codification
        3. Accounting Changes
        4. Prior-Period Adjustments
        5. Disclosure of Accounting Policies
        6. Development-Stage Companies
        7. Troubled Debt Restructuring
        8. Segmental Reporting
        9. Imputing Interest on Notes
        10. Accounting for Futures Contracts
        11. Oil- and Gas-Producing Companies
      5. CHAPTER 5: Key Financial Accounting Areas
        1. Consolidations
        2. Business Combinations
        3. Investments in Securities
        4. Equity Method
        5. Leases
        6. Pension Plans
        7. Other Postretirement Benefits
        8. Income Tax Accounting
        9. Foreign Currency Translation and Transactions
        10. Insurance Contracts
        11. U.S. GAAP versus IFRS
    9. Part II: Analyzing Financial Statements
      1. Chapter 6: Financial Statement Analysis
        1. Introduction
        2. Horizontal and Vertical Analysis
        3. Balance Sheet Analysis
        4. Income Statement Analysis
        5. Bankruptcy Prediction
        6. Liquidation Value
    10. Part III: Managerial Accounting Applications
      1. Chapter 7: Appraising Segmental Performance
        1. The What and Why of Responsibility Accounting
        2. Cost Center Performance and Standard Costs
        3. Flexible Budgets and Performance Reports
        4. Profit Centers and Segmented Reporting
        5. Profit Variance Analysis
        6. How to Measure the Performance of Investment Centers
        7. More on Economic Value Added
        8. Corporate Balanced Scorecard
        9. How to Price Goods and Services Transferred
        10. Alternative Transfer Pricing Schemes
        11. Budgeting and Financial Planning
      2. Chapter 8: Analysis of Projects, Proposals, and Special Situations
        1. Cost–Volume–Profit and Breakeven Analysis
        2. Short-Term, Nonroutine Decisions
        3. Theory of Constraints
        4. Life-Cycle Costs and Target Costing
        5. Activity-Based Costing
        6. Just-in-Time and Total Quality Management
        7. Taguchi Method of Quality Control
        8. Backflush Costing
        9. Environmental Costs and Ecoefficiency
        10. Time Value Fundamentals
        11. Capital Budgeting
        12. MACRS Rule
      3. Chapter 9: Quantitative Applications and Modeling in Accounting
        1. Statistical Analysis and Evaluation
        2. Regression Analysis
        3. Trend Analysis
        4. Regression Statistics
        5. Quantitative Methods for Accounting
        6. Decision Making
        7. Linear Programming and Shadow Prices
        8. Goal Programming and Multiple Goals
        9. Learning Curve
        10. Inventory Planning and Control
        11. Program Evaluation and Review Technique
        12. Project Budgeting and Control Using Earned Value Analysis
    11. Part IV: Auditing, Compiling, and Reviewing Financial Statements
      1. Chapter 10: Auditing Procedures
        1. Risk Assessment Procedures
        2. The Entity and Its Environment
        3. Internal Control
        4. Substantive Procedures
        5. Audit Reports
      2. CHAPTER 11: Compilation, Review, and Other Reporting Services
        1. Compilation of Financial Statements
        2. Review of Financial Statements
        3. Accountant's Consideration of Obtaining an Updating Representation Letter from Management
        4. Documentation in a Review Engagement
        5. Restricting the Use of an Accountant's Compilation or Review Report
        6. Consideration of an Entity's Ability to Continue as a Going Concern
        7. Subsequent Events
        8. Subsequent Discovery of Facts Existing at the Date of the Report
        9. Change in Engagement from Audit or Review to Compilation
        10. Reporting on Prescribed Forms
        11. Communication between Successor and Predecessor Accountants
        12. Compilation of Specified Elements, Accounts, or Items of a Financial Statement
        13. Compilation of Pro Forma Financial Information
        14. Communicating to Management and Others in a Compilation or Review Engagement
        15. Reports on Prospective Financial Statements
        16. Attest Engagements
        17. Examination of an Entity's Internal Control over Financial Reporting That Is Integrated with an Audit of Its Financial Statements (SSAE 15)
        18. Integration with the Financial Statement Audit
        19. Reporting on Controls at a Service Organization
        20. Compliance Attestation
        21. Management's Discussion and Analysis
        22. Personal Financial Statements Included in Written Personal Financial Plans
        23. Reporting on Comparative Statements
        24. Special Reports
      3. CHAPTER 12: Auditing Standards
        1. SAS 1—Codification of Auditing Standards and Procedures
        2. SAS 2—Reports on Audited Financial Statements
        3. SAS 3—The Effects of EDP on the Auditor's Study and Evaluation of Internal Control
        4. SAS 4—Quality Control Considerations for a Firm of Independent Auditors
        5. SAS 5—The Meaning of “Present Fairly in Conformity with Generally Accepted Accounting Principles” in the Independent Auditor's Report
        6. SAS 6—Related Party Transactions
        7. SAS 7—Communication between Predecessor and Successor Auditor
        8. SAS 8—Other Information in Documents Containing Audited Financial Statements
        9. SAS 9—The Effect of an Internal Audit Function on the Scope of the Independent Auditor's Examination
        10. SAS 10—Limited Review of Interim Financial Information
        11. SAS 11—Using the Work of a Specialist
        12. SAS 12—Inquiry of a Client's Lawyer Concerning Litigation, Claims, and Assessments
        13. SAS 13—Reports on a Limited Review of Interim Financial Information
        14. SAS 14—Special Reports
        15. SAS 15—Reports on Comparative Financial Statements
        16. SAS 16—The Independent Auditor's Responsibility for the Detection of Errors or Irregularities
        17. SAS 17—Illegal Acts by Clients
        18. SAS 18—Unaudited Replacement Cost Information
        19. SAS 19—Client Representations
        20. SAS 20—Required Communication of Material Weaknesses in Internal Accounting Control
        21. SAS 21—Segment Information
        22. SAS 22—Planning and Supervision
        23. SAS 23—Analytical Review Procedures
        24. SAS 24—Review of Interim Financial Information
        25. SAS 25—The Relationship of Generally Accepted Auditing Standards to Quality Control Standards
        26. SAS 26—Association with Financial Statements
        27. SAS 27—Supplementary Information Required by the Financial Accounting Standards Board
        28. SAS 28—Supplementary Information on the Effects of Changing Prices
        29. SAS 29—Reporting on Information Accompanying the Basic Financial Statements in Auditor-Submitted Documents
        30. SAS 30—Reporting on Internal Accounting Control
        31. SAS 31—Evidential Matter
        32. SAS 32—Adequacy of Disclosure in Financial Statements
        33. SAS 33—Supplementary Oil and Gas Reserve Information
        34. SAS 34—The Auditor's Considerations When a Question Arises about an Entity's Continued Existence
        35. SAS 35—Special Reports: Applying Agreed-Upon Procedures to Specified Elements, Accounts, or Items of a Financial Statement
        36. SAS 36—Review of Interim Financial Information
        37. SAS 37—Filings under Federal Securities Statutes
        38. SAS 38—Letters for Underwriters
        39. SAS 39—Audit Sampling
        40. SAS 40—Supplementary Mineral Reserve Information
        41. SAS 41—Working Papers
        42. SAS 42—Reporting on Condensed Financial Statements and Selected Financial Data
        43. SAS 43—Omnibus Statement on Auditing Standards
        44. SAS 44—Special-Purpose Reports on Internal Accounting Control at Service Organizations
        45. SAS 45—Omnibus Statement on Auditing Standards—1983
        46. SAS 46—Consideration of Omitted Procedures after the Report Date
        47. SAS 47—Audit Risk and Materiality in Conducting an Audit
        48. SAS 48—The Effects of Computer Processing on the Audit of Financial Statements
        49. SAS 49—Letters for Underwriters
        50. SAS 50—Reports on the Application of Accounting Principles
        51. SAS 51—Reporting on Financial Statements Prepared for Use in Other Countries
        52. SAS 52—Omnibus Statement on Auditing Standards—1987
        53. SAS 53—The Auditor's Responsibility to Detect and Report Errors and Irregularities
        54. SAS 54—Illegal Acts by Clients
        55. SAS 55—Consideration of Internal Control in a Financial Statement Audit
        56. SAS 56—Analytical Procedures
        57. SAS 57—Auditing Accounting Estimates
        58. SAS 58—Reports on Audited Financial Statements
        59. SAS 59—The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern
        60. SAS 60—Communication of Internal Control Related Matters Noted in an Audit
        61. SAS 61—Communication with Audit Committees
        62. SAS 62—Special Reports
        63. SAS 63—Compliance Auditing Applicable to Governmental Entities and Other Recipients of Governmental Financial Assistance
        64. SAS 64—Omnibus Statement on Auditing Standards
        65. SAS 65—The Auditor's Consideration of the Internal Audit Function in an Audit of Financial Statements
        66. SAS 66—Communication of Matters about Interim Financial Information Filed or to Be Filed with Specified Regulatory Agencies
        67. SAS 67—The Confirmation Process
        68. SAS 68—Compliance Auditing Applicable to Governmental Entities and Other Recipients of Governmental Financial Assistance
        69. SAS 69—The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles in the Independent Auditor's Report
        70. SAS 70—Service Organizations
        71. SAS 71—Interim Financial Information
        72. SAS 72—Letters for Underwriters and Certain Other Requesting Parties
        73. SAS 73—Using the Work of a Specialist
        74. SAS 74—Compliance Auditing Considerations in Audits of Governmental Entities and Recipients of Governmental Financial Assistance
        75. SAS 75—Engagements to Apply Agreed-Upon Procedures to Specified Elements, Accounts, or Items of a Financial Statement
        76. SAS 76—Amendments to Statement on Auditing Standards No. 72, Letters for Underwriters and Certain Other Requesting Parties
        77. SAS 77—Amendments to Statements on Auditing Standards No. 22, Planning and Supervision; No. 59, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern; and No. 62, Special Reports
        78. SAS 78—Consideration of Internal Control in a Financial Statement Audit: An Amendment to SAS 55
        79. SAS 79—Amendment to Statement on Auditing Standards No. 58, Reports on Audited Financial Statements
        80. SAS 80—Amendment to Statement on Auditing Standards No. 31, Evidential Matter
        81. SAS 81—Auditing Investments
        82. SAS 82—Consideration of Fraud in a Financial Statement Audit
        83. SAS 83—Establishing an Understanding with the Client
        84. SAS 84—Communications between Predecessor and Successor Accountants
        85. SAS 85—Management Representations
        86. SAS 86—Amendment to Statement on Auditing Standards No. 72, Letters for Underwriters and Certain Other Requesting Parties
        87. SAS 87—Restricting the Use of an Auditor's Report
        88. SAS 88—Service Organizations and Reporting on Consistency
        89. SAS 89—Audit Adjustments
        90. SAS 90—Audit Committee Communications
        91. SAS 91—Federal GAAP Hierarchy
        92. SAS 92—Auditing Derivative Instruments, Hedging Activities, and Investments in Securities
        93. SAS 93—Omnibus Statement on Auditing Standards—2000
        94. SAS 94—The Effect of Information Technology on the Auditor's Consideration of Internal Control in a Financial Statement Audit
        95. SAS 95—Generally Accepted Auditing Standards
        96. SAS 96—Audit Documentation
        97. SAS 97—Amendment to Statement on Auditing Standards No. 50, Reports on the Application of Accounting Principles
        98. SAS 98—Omnibus Statement on Auditing Standards—2002
        99. SAS 99—Consideration of Fraud in a Financial Statement Audit
        100. SAS 100—Interim Financial Information
        101. SAS 101—Auditing Fair Value Measurements and Disclosures
        102. SAS 102—Defining Professional Requirements in Statements on Auditing Standards
        103. SAS 103—Audit Documentation
        104. SAS 104—Amendment to SAS 1, Codification of Auditing Standards and Procedures (“Due Professional Care in the Performance of Work”)
        105. SAS 105—Amendment to SAS 95—Generally Accepted Auditing Standards
        106. SAS 106—Audit Evidence
        107. SAS 107—Audit Risk and Materiality in Conducting an Audit
        108. SAS 108—Planning and Supervision
        109. SAS 109—Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
        110. SAS 110—Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained
        111. SAS 111—Amendment to Statement on Auditing Standards No. 39, Audit Sampling
        112. SAS 112—Communication of Internal Control–Related Matters Identified in an Audit
        113. SAS 113—Omnibus 2006
        114. SAS 114—The Auditor's Communication with Those Charged with Governance
        115. SAS 115—Communicating Internal Control Related Matters Identified in an Audit
        116. SAS 116—Interim Financial Information
        117. SAS 117—Compliance Audits
        118. SAS 118—Other Information in Documents Containing Audited Financial Statements
        119. SAS 119—Supplementary Information in Relation to the Financial Statements as a Whole
        120. SAS 120—Required Supplementary Information
        121. SAS 121—Revised Applicability of Statement on Auditing Standards No. 100, Interim Financial Information
        122. AS 1—References in Auditor's Reports to the Standards of the Public Company Accounting Oversight Board
        123. AS 2—An Audit of Internal Control over Financial Reporting Performed in Conjunction with an Audit of Financial Statements
        124. AS 3—Audit Documentation
        125. AS 4—Reporting on Whether a Previously Reported Material Weakness Continues to Exist
        126. AS 5—An Audit of Internal Control over Financial Reporting That Is Integrated with an Audit of Financial Statements
        127. AS 6—Evaluating Consistency of Financial Statements
        128. AS 7—Engagement Quality Review
        129. AS 8—Audit Risk
        130. AS 9—Audit Planning
        131. AS 10—Supervision of the Audit Engagement
        132. AS 11—Consideration of Materiality in Planning and Performing an Audit
        133. AS 12—Identifying and Assessing Risks of Material Misstatements
        134. AS 13—The Auditor's Responses to the Risks of Material Misstatement
        135. AS 14—Evaluating Audit Results
        136. AS 15—Audit Evidence
      4. Chapter 13: Sarbanes-Oxley Act of 2002
        1. Auditor Independence
        2. Partner Rotation
        3. Public Company Accounting Oversight Board
    12. Part V: Taxation
      1. Chapter 14: Tax Research
        1. Sources of Tax Law
        2. The Court System
    13. Part VI: Other Professional Standards
      1. Chapter 15: Consulting Services
      2. Chapter 16: Quality Control
      3. Chapter 17: Code of Professional Conduct
        1. Rule 101—Independence
        2. Rule 102—Integrity and Objectivity
        3. Rule 201—General Standards
        4. Rule 202—Compliance with Standards
        5. Rule 203—Accounting Principles
        6. Rule 301—Confidential Client Information
        7. Rule 302—Contingent Fees
        8. Rule 501—Acts Discreditable
        9. Rule 502—Advertising and Other Forms of Solicitations
        10. Rule 503—Commissions and Referral Fees
        11. Rule 505—Form of Organization and Name
    14. Index